Average prime London rents fell by 1.9% during the fourth quarter of 2012 leaving annual growth at just 0.5%, according to the latest report from Savills World Research.
But the figure masks considerable variations in terms of location and the type of property. For example, in central London values fell by 0.7% but rose by 0.7% in the prime rental markets of Islington.
Lucian Cook, director of Savills Research, continued economic uncertainty and threats to employment in the financial sector are affecting corporate relocation budgets, with single executives relocating rather than families. This is hitting the family house markets in many prime London locations.
Conversely, strong demand for one or two bedroom flats is being seen from young professionals and wealthy students. Over the last quarter, rents for one beds have out performed the rest of the market as rental prices stayed flat compared to a fall of 1.9% for all properties.
In Chelsea, Kensington Mayfair, Knightsbridge and Belgravia, where the average rent at
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